Author: TSX Stocks

Chart Scan – Aug 05, 2022

Chart Alert – Aug 05, 2022

EVER.V – Evergold Corp.

GAINS PER DAY SINCE ALERT PRICE
Alerted on 08/05/22
@ 0.09
Day 1
5.56%
Day 2
5.56%
Day 3
11.11%
Day 4
11.11%

SEB.V – Smart Employee Benefits Inc.

GAINS PER DAY SINCE ALERT PRICE
Alerted on 08/05/22
@ 0.14
Day 1
11.11%
Day 2
3.70%
Day 3
0.00%
Day 4
0.00%

Lion Electric Announces Second Quarter 2022 Results

MONTREAL, Canada – The Lion Electric Company (NYSE: LEV) (TSX: LEV) (“Lion” or the “Company”), a leading manufacturer of all-electric medium and heavy-duty urban vehicles, today announced its financial and operating results for the second quarter of fiscal year 2022, which ended on June 30, 2022. Lion reports its results in U.S. dollars and in accordance with International Financial Reporting Standards (“IFRS”).

Q2 2022 Financial Highlights:
Delivery of 105 vehicles, an increase of 44 vehicles, as compared to the 61 delivered in the same period last year. Revenue of $29.5 million, up $12.8 million, as compared to $16.7 million in Q2 2021. Gross loss of $3.5 million, as compared to a gross profit of $0.9 million in Q2 2021. Net earnings of $37.5 million, as compared to a net loss of $178.5 million in Q2 2021. Net earnings for Q2 2022 include a $56.9 million gain related to non-cash decrease in the fair value of share warrant obligations and a $3.4 million charge related to non-cash share-based compensation, compared to a $99.3 million charge related to non-cash increase in the fair value of share warrant obligations, $54.8 million charge related to non-cash share-based compensation, and $13.7 million of transaction costs included in net loss for Q2 2021. Adjusted EBITDA[1] of negative $14.4 million, as compared to negative $5.5 million in Q2 2021, after mainly adjusting for certain non-cash items such as change in fair value of share warrant obligations and share-based compensation. Capital expenditures, which included expenditures related to the Joliet Facility and the Lion Campus, amounted to $44.3 million, up $41.0 million, as compared to $3.3 million in Q2 2021.
Additions to intangible assets, which mainly consist of R&D activities, amounted to $24.6 million, up $13.9 million, as compared to $10.7 million in Q2 2021. Establishment of cross-border $125 million “at-the-market” equity program (“ATM Program”).

Business Updates:
More than 700 vehicles on the road, with over 10 million miles driven.
Vehicle order book[2] of 2,357 all-electric medium- and heavy-duty urban vehicles as of August 4, 2022, consisting of 286 trucks and 2,071 buses, representing a combined total order value of approximately $575 million based on management’s estimates. LionEnergy order book2 of 226 charging stations and related services as of August 4, 2022, representing a combined total order value of approximately $3.0 million. 12 Experience Centers in operation in the United States and Canada. Installation of assembly stations continued at the Joliet Facility in the quarter and manufacturing of Lion C units (for working stations set up and employees training purposes) began. In order to accelerate return on investment, the Company decided to review the cadence of its initial ramp up of production capacity at the Joliet Facility to align it further with projected deliveries and to initially focus on bus production. The building shell for the battery plant building is substantially completed. For the Innovation center, the foundation work has been completed and the steel structure is 90% completed. The Company’s prototype battery packs are currently undergoing testing and certification and engineering design for one version of the packs and module line has been finalized. Lion continues to expect the certification of packs, factory acceptance of production equipment at JR Automation’s facility, and production of packs in Mirabel to take place prior to the end of 2022. Site acceptance of production equipment in Mirabel is expected to be completed near the beginning of 2023.
The Company has elected to implement configuration changes to certain vehicles to increase quality and performance, improve manufacturing efficiencies, and optimize the development of new models. Such measures have mainly resulted in the temporary suspension of commercial production and the projected delivery of the LionA.
As of August 4, 2022, Lion had approximately 1,300 employees, of which over 300 were in its Engineering and R&D departments.

“We are pleased with our Q2 performance, as in spite of ongoing supply-chain challenges, for the third quarter in a row, we delivered a record number of vehicles in the history of Lion,” commented Marc Bedard, CEO – Founder of Lion. “As we are nearing the start of operations at our U.S. manufacturing facility and our battery plant, we also decided to adjust the cadence of our capital spend. This will enable us to accelerate return on investment and optimally manage our capital resources”, concluded Marc Bedard.

Select Explanations on Results of Operations for the Second Quarter of Fiscal Year 2022 Revenue
For the three months ended June 30, 2022, revenue amounted to $29.5 million, an increase of $12.8 million compared to $16.7 million for the three months ended June 30, 2021. The increase in revenue was primarily due to an increase in vehicle sales volume of 44 units, from 61 units (48 school buses and 13 trucks; 41 vehicles in Canada and 20 vehicles in the U.S.) for the three months ended June 30, 2021, to 105 units (90 school buses and 15 trucks; 91 vehicles in Canada and 14 vehicles in the U.S.) for the three months ended June 30, 2022. Revenues for the three months ended June 30, 2022 were impacted by continuing global supply chain challenges, which required the Company to delay the final assembly of certain vehicles and resulted in increased inventory levels.

For the six months ended June 30, 2022, revenue amounted to $52.2 million, an increase of $29.3 million compared to $22.9 million for the six months ended June 30, 2021. The increase in revenue was primarily due to an increase in vehicle sales volume of 104 units, from 85 units (66 school buses and 19 trucks; 63 vehicles in Canada and 22 vehicles in the U.S.) for the six months ended June 30, 2021, to 189 units (162 school buses and 27 trucks; 171 vehicles in Canada and 18 vehicles in the U.S.) for the six months ended June 30, 2022. Revenues for the six months ended June 30, 2022 were impacted by continuing global supply chain challenges, which required the Company to delay the final assembly of certain vehicles and resulted in increased inventory levels.

Cost of Sales
For the three months ended June 30, 2022, cost of sales amounted to $33.0 million, representing an increase of $17.2 million, compared to the three months ended June 30, 2021. For the six months ended June 30, 2022, cost of sales amounted to $56.5 million, representing an increase of $32.7 million, compared to the six months ended June 30, 2021. The increase for both periods was primarily due to increased sales volumes and higher production levels, increased fixed manufacturing and inventory management system costs related to the ramp-up of production capacity for future quarters, and the impact of continuing global supply chain challenges.

Gross Loss (Profit)
For the three months ended June 30, 2022, gross profit decreased by $4.4 million to negative $3.5 million, compared to positive $0.9 million for the three months ended June 30, 2021. For the six months ended June 30, 2022, gross loss decreased by $3.5 million to negative $4.4 million, compared to negative $0.9 million for the six months ended June 30, 2021. The decrease in gross profit for both periods included the positive gross profit impact of increased sales volumes, mainly offset by the impact of increased fixed manufacturing and inventory management system costs related to the ramp-up of production capacity for future quarters, and the impact of continuing global supply chain challenges.

Administrative Expenses
For the three months ended June 30, 2022, administrative expenses decreased by $38.3 million from $50.0 million for the three months ended June 30, 2021, to $11.7 million. Administrative expenses for the three months ended June 30, 2022 included $2.6 million of non-cash share-based compensation, compared to $44.8 million for three months ended June 30, 2021. Excluding the impact of non-cash share-based compensation, administrative expenses increased from $5.2 million for the three months ended June 30, 2021 to $9.1 million for the three months ended June 30, 2022

For the six months ended June 30, 2022, administrative expenses decreased by $33.6 million from $56.3 million for the six months ended June 30, 2021, to $22.7 million. Administrative expenses for the six months ended June 30, 2022 included $5.3 million of non-cash share-based compensation, compared to $47.8 million for six months ended June 30, 2021. Excluding the impact of non-cash share-based compensation, administrative expenses increased from $8.5 million for the six months ended June 30, 2021 to $17.4 million for the six months ended June 30, 2022. The increase was mainly due to an increase in expenses as a result of Lion becoming a public company in May 2021, an increase in expenses resulting from the expansion of Lion’s head office capabilities in anticipation of an expected increase in business activities, as well as professional fees related to supply chain and strategic project optimization initiatives.

Selling Expenses
For the three months ended June 30, 2022, selling expenses decreased by $6.6 million, from $13.3 million for the three months ended June 30, 2021, to $6.7 million. Selling expenses for the three months ended June 30, 2022 included $0.8 million of non-cash share-based compensation, compared to $10.0 million for three months ended June 30, 2021. Excluding the impact of non-cash share-based compensation, selling expenses increased from $3.3 million for the three months ended June 30, 2021 to $5.9 million for the three months ended June 30, 2022. The increase was primarily due to Lion expanding its sales force in anticipation of the ramp-up of production capacity, and an increase in expenses as a result of the opening and operations of new Experience Centers.

For the six months ended June 30, 2022, selling expenses decreased by $5.6 million, from $17.7 million for the six months ended June 30, 2021, to $12.1 million. Selling expenses for the six months ended June 30, 2022 included $1.8 million of non-cash share-based compensation, compared to $12.2 million for six months ended June 30, 2021. Excluding the impact of non-cash share-based compensation, selling expenses increased from $5.5 million for the six months ended June 30, 2021 to $10.3 million for the six months ended June 30, 2022. The increase was primarily due to Lion expanding its sales force in anticipation of the ramp-up of production capacity, and an increase in expenses as a result of the opening and operations of new Experience Centers.

Transaction costs
Transaction costs of $13.7 million for the three and six months ended June 30, 2021 were related to the completion of the Company’s business combination and plan of reorganization on May 6, 2021 pursuant to which Lion became a public company (the “Business Combination”) and were mainly composed of legal, banking, and other professional fees.

Finance Costs (Income)
For the three months ended June 30, 2022, finance costs (income) decreased by $3.8 million, from a cost of $3.0 million for the three months ended June 30, 2021, to income of $0.8 million. The decrease was driven primarily by lower interest expense on long-term debt, the non-recurrence of interest expense on convertible debt instruments and accretion expense on retractable common shares which were repaid on May 6, 2021, and the gain on derecognition of a financial liability related to previously acquired dealership rights, partially offset by an increase in interest costs related to lease liabilities. The gain on derecognition of the financial liability occurred as a result of the agreement with a private company relating to the previous acquisition of dealership rights in certain territories in the United States maturing on May 7, 2022.

For the six months ended June 30, 2022, finance costs decreased by $6.6 million, from $6.9 million for the six months ended June 30, 2021, to $0.3 million. The decrease was driven primarily by lower interest expense on long-term debt, the non-recurrence of interest expense on convertible debt instruments and accretion expense on retractable common shares which were repaid on May 6, 2021, and the gain on derecognition of a financial liability related to previously acquired dealership rights, partially offset by an increase in interest costs related to lease liabilities. The gain on derecognition of the financial liability occurred as a result of the agreement with a private company relating to the previous acquisition of dealership rights in certain territories in the United States maturing on May 7, 2022

Foreign Exchange Loss (Gain)
Foreign exchange gains and losses relate primarily to the revaluation of net monetary assets denominated in foreign currencies to the functional currencies of the related Lion entities. Foreign exchange gain for the three months ended June 30, 2022, was $1.6 million compared to a loss of $0.1 million for the three months ended June 30, 2021, largely as a result of a weakening of the Canadian dollar relative to the US dollar during the three months ended June 30, 2022, as compared to the three months ended June 30, 2021.

Foreign exchange gain for the six months ended June 30, 2022, was $0.7 million compared to a gain of $0.1 million for the six months ended June 30, 2021, largely as a result of a weakening of the Canadian dollar relative to the US dollar during the three months ended June 30, 2022, as compared to the three months ended June 30, 2021.

Change in fair value of share warrant obligations
Share warrant obligations relate to the warrants issued to a specified customer in July 2020 and the public and private warrants issued as part of the closing of the Business Combination on May 6, 2021. Change in fair value of share warrant obligations resulted in a gain of $56.9 million for the three months ended June 30, 2022, compared to a charge of $99.3 million for the three months ended June 30, 2021, and resulted in a gain of $78.4 million for the six months ended June 30, 2022, compared to a charge of $99.2 million for the six months ended June 30, 2021. The gains for the three and six months ended June 30, 2022 result mainly from the decrease in the market price of Lion equity as compared to the previous valuations.

Net Earnings (Loss)
For the three months ended June 30, 2022, net earnings were $37.5 million, as compared to a net loss of $178.5 million for the three months ended June 30, 2021. The increase in net earnings (loss) for the three months ended June 30, 2022 compared to the three months ended June 30, 2021 was largely due to the gain related to the fair value of share warrant obligations, lower non-cash share-based compensation, and the non-recurrence of transaction costs incurred during the three months ended June 30, 2021, and lower finance costs, partially offset by the gross loss and higher administrative and selling expenses (excluding share-based compensation).

For the six months ended June 30, 2022, net earnings were $39.6 million, as compared to a net loss of $194.6 million for the six months ended June 30, 2021. The increase in net earnings (loss) for the three months ended June 30, 2022 compared to the six months ended June 30, 2021 was largely due to the gain related to the fair value of share warrant obligations, lower non-cash share-based compensation, the non-recurrence of transaction costs incurred during the six months ended June 30, 2021, and lower finance costs, partially offset by the gross loss and higher administrative and selling expenses (excluding share-based compensation).

Board of Directors
Ms. Latasha Akoma and Mr. Dane L. Parker, Operating Partner at GenNx360 Capital Partner, and Retired Chief Sustainability Officer and Vice President, Sustainable Workplaces at General Motors, respectively, have been appointed to the Board of Directors of Lion as independent Directors.

Latasha Akoma
Ms. Akoma, who is responsible for driving strong performance, operational efficiencies, and profitability across the GenNx portfolio companies, brings over 26 years of managerial experience in all aspects of manufacturing, operations, and business strategies.

Prior to joining GenNx360 Capital Partner, she held several executive leadership positions at Harley-Davidson Motor Company, a company she joined in 2009 as the Director of Operations, with responsibility for vehicle assembly and materials management. Prior to that, Ms. Akoma was a Senior Manager of Paint Operations at Chrysler (formerly DaimlerChrysler) where she held a variety of increasing senior leadership positions in operations and general management.

Dane L. Parker
As General Motors’ first Chief Sustainability Officer, Mr. Parker was a leading force behind the company’s plan to become carbon neutral by 2040 and aspiration to have zero-emissions from all new light-duty vehicles by 2035. Mr. Parker also held global responsibilities for facility design, engineering, construction, operations, energy procurement and efficiency, real estate, environmental compliance, as well as workplace strategy.

Prior to General Motor, Mr. Parker was Vice President, Global Environment, Health and Safety, Facilities and Real Estate for Dell, Inc. He also spent more than 13 years at Intel Corporation in the Technology and Manufacturing organization in a variety of operational roles, including as Director of Global Environment, Health and Safety.

Financial Report
This release should be read together with our 2022 second quarter financial report, including the unaudited condensed interim consolidated financial statements of the Company as at and for the quarter ended June 30, 2022 and related management’s discussion and analysis (“MD&A”), which will be filed by the Company with applicable Canadian securities regulatory authorities and with the U.S. Securities and Exchange Commission and which will be available on our website at www.thelionelectric.com.

NON-IFRS MEASURES AND OTHER PERFORMANCE METRICS
This press release makes reference to Adjusted EBITDA, which is a non-IFRS financial measure, as well as other performance metrics, including the Company’s order book, which are defined below. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. Lion compensates for these limitations by relying primarily on Lion’s IFRS results and using Adjusted EBITDA and order book on a supplemental basis. Readers should not rely on any single financial measure to evaluate Lion’s business.

Adjusted EBITDA
“Adjusted EBITDA” is defined as net earnings (loss) before finance costs, income tax expense or benefit, and depreciation and amortization, adjusted for share-based compensation, changes in fair value of share warrant obligations, foreign exchange (gain) loss and transaction and other non-recurring expenses. Adjusted EBITDA is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, IFRS. Lion believes that the use of Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing Lion’s financial measures with those of comparable companies, which may present similar non-IFRS financial measures to investors. However, readers should be aware that when evaluating Adjusted EBITDA, Lion may incur future expenses similar to those excluded when calculating Adjusted EBITDA. In addition, Lion’s presentation of these measures should not be construed as an inference that Lion’s future results will be unaffected by unusual or non-recurring items. Lion’s computation of Adjusted EBITDA may not be comparable to other similarly entitled measures computed by other companies, because all companies may not calculate Adjusted EBITDA in the same fashion. Readers should review the reconciliation of net earnings (loss), the most directly comparable IFRS financial measure, to Adjusted EBITDA presented by the Company under section 13.0 of the Company’s MD&A for the three and six months ended June 30, 2022 entitled “Results of Operations – Reconciliation of Adjusted EBITDA.”

Order Book
This press release also makes reference to the Company’s “order book” with respect to vehicles (trucks and buses) as well as charging stations. The Company’s vehicle and charging stations order book, expressed as a number of units or the amount of sales expected to be recognized in the future (at the applicable time of delivery) in respect of such number of units, is determined by management based on purchase orders that have been signed, orders that have been formally confirmed by clients or products in respect of which formal joint applications for governmental subsidies or economic incentives have been made by the applicable clients and the Company. The vehicles included in the vehicle order book as of August 4, 2022 provided for a delivery period ranging from a few months to the end of the year ending December 31, 2025. Substantially all deliveries are subject to the granting of subsidies and incentives with processing times that are subject to important variations, and there has been in the past and the Company expects there will continue to be variances between the expected delivery periods of orders and the actual delivery times, and certain delays could be significant. Such variances or delays could result in the loss of a subsidy or incentive and/or in the cancellation of certain orders, in whole or in part.

The Company’s presentation of the order book should not be construed as a representation by the Company that the vehicles and charging stations included in its order book will translate into actual sales. See the section below for a full description of the methodology used by the Company in connection with the order book and certain important risks and uncertainties relating to such methodology and the presentation of the order book.

Order Book Methodology

General Principle
The Company’s vehicle and charging stations order book, expressed as a number of units or the amount of sales expected to be recognized in the future (at the applicable time of delivery) in respect of such number of units, is determined by management based on purchase orders that have been signed, orders that have been formally confirmed by clients or products in respect of which formal joint applications for governmental subsidies or economic incentives have been made by the applicable clients and the Company. The vehicles included in the vehicle order book as of August 4, 2022 provided for a delivery period ranging from a few months to the end of the year ending December 31, 2025.

Substantially all deliveries are subject to the granting of subsidies and incentives with processing times that are subject to important variations, and there has been in the past and the Company expects there will continue to be variances between the expected delivery periods of orders and the actual delivery times, and certain delays could be significant. Such variances or delays could result in the loss of a subsidy or incentive and/or in the cancellation of certain orders, in whole or in part.

The Company’s presentation of the order book should not be construed as a representation by the Company that the vehicles and charging stations included in its order book will translate into actual sales.

Delivery Periods
The Company’s order book refers to products that have not yet been delivered but which are reasonably expected by management to be delivered within a time period that can be reasonably estimated and includes, in the case of charging stations, services that have not been completed but which are reasonably expected by management to be completed in connection with the delivery of the product.

Purchase orders and applications generally provide for a time period during which the client expects delivery of the vehicles. Such period can vary from a specific date, a number or range of months after the issuance of the order or application, or a calendar year. The vehicles included in the vehicle order book as of August 4, 2022 provided for a delivery period, subject to the satisfaction of the conditions set forth in each order (which, in substantially all cases as further discussed herein, relate to the approval of governmental subsidies and grants), ranging from a few months to the end of the year ending December 31, 2025. Delivery periods are disclosed from time to time by the Company when available in respect of material orders. Delivery periods should not be construed as a representation or a guarantee by the Company that the actual delivery time will take place as scheduled. Given the nature of the business and the products of the Company, the implied lead time for the production and delivery of a vehicle (which may be impacted, among other things, by supply chain challenges or changes in specifications), the nature of certain customers of the Company (in many cases, fleet owners operating capital intensive operations which require financing and ongoing scheduling flexibility), and the fact that, as further described herein, substantially all deliveries are subject to the granting of subsidies and incentives with processing times that are subject to important variations, there has been in the past and the Company expects there will continue to be variances between the expected delivery periods of orders and the actual delivery times, and certain delays could be significant. Such variances or delays could result in the loss of a subsidy or incentive and/or in the cancellation of certain orders, in whole or in part.

Pricing
When the Company’s order book is expressed as an amount of sales, such amount has been determined by management based on the current specifications or requirements of the applicable order, assumes no changes to such specifications or requirements and, in cases where the pricing of a product or service may vary in the future, represents management’s reasonable estimate of the prospective pricing as of the time such estimate is reported. A small number of vehicles included in the order book have a pricing that remains subject to confirmation based on specifications and other options to be agreed upon in the future between the applicable client and the Company. For purposes of the determination of the order book and the value allocated to such orders, management has estimated the pricing based on its current price lists and certain other assumptions relating to specifications and requirements deemed reasonable in the circumstances.

Performance Metric
The order book is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, IFRS, and is neither disclosed in nor derived from the financial statements of the Company. The Company believes that the disclosure of its order book provides an additional tool for investors to use in evaluating the Company’s performance, market penetration for its products, and the cadence of capital expenditures and tooling.

The Company’s computation of its order book may not be comparable to other similarly entitled measures computed by other companies, because all companies may not calculate their order book, order backlog, or order intake in the same fashion. In addition, as explained above, the Company’s presentation of the order book is calculated based on the orders and the applications made as of the time that the information is presented, and it is not based on the Company’s assessment of future events and should not be construed as a representation by the Company that the vehicles and charging stations included in its order book will translate into actual sales.

Ongoing Evaluation; Risk Factors
A portion of the vehicles or charging stations included in the Company’s order book may be cancellable in certain circumstances (whether by reason of a delivery delay, unavailability of a subsidy or incentive or otherwise) within a certain period. Management reviews the composition of the order book every time it is reported in order to determine whether any orders should be removed from the order book. For purposes of such exercise, management identifies orders that have been or are reasonably likely to be cancelled and examines, among other things, whether conditions attaching to the order are reasonably likely to result in a cancellation of the order in future periods as well as any other available information deemed relevant, including ongoing dialogue with clients. Such exercise may result from time to time in orders that have previously been included in the order book being removed even if they have not been formally canceled by the client.

The Company cannot guarantee that its order book will be realized in full, in a timely manner, or at all, or that, even if realized, revenues generated will result in profits or cash generation as expected, and any shortfall may be significant. The Company’s conversion of its order into actual sales is dependent on various factors, including those described below and in section 23.0 entitled “Risk Factors” of the Company’s MD&A for the years ended December 31, 2021, 2020 and 2019 and in Item 3.D entitled “Risk Factors” of the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2021. For instance, a customer may default on an order, may become subject to bankruptcy or insolvency or cease its business operations. In addition, substantially all of the orders included in the order book are subject to conditions relating to the granting of governmental subsidies and incentives or the timing of deliveries and, in a limited number of cases, the availability of certain specifications and options or the renewal of certain routes by governmental or school authorities. As a result, the Company’s ability to convert its order book into actual sales is highly dependent on the granting and timing of governmental subsidies and incentives, most notably subsidies and incentives under the Quebec government’s 2030 Plan for a Green Economy, under the Federal’s Infrastructure Canada’s Zero-Emission Transit Fund (ZETF), and under California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). The termination, modification, delay or suspension of any such governmental subsidies and incentives could result in delayed deliveries or the cancellation of all or any portion of such orders, which, in turn, could have a material and adverse effect on the Company’s business, results of operations or financial condition.

The Company’s conversion of its order book into actual sales is also dependent on its ability to economically and timely manufacture its vehicles, at scale. The Company delivered 196 vehicles during the year ended December 31, 2021, and 189 vehicles during the six months ended June 30, 2022. As of August 4, 2022, the Company’s vehicle order book stood at 2,357 vehicles. The execution of the Company’s growth strategy and the conversion of its order book will therefore require significant ramp-up in its production. While the Company’s Saint-Jerome facility currently has an annual production capacity of 2,500 vehicles at full scale and it is in the process of establishing its operations at the Joliet Facility and the Lion Campus, the Company has limited experience to date in high volume manufacturing of its vehicles. In addition, as of August 4, 2022, 418 units included in the order book, representing a combined total order value of approximately $165 million, related to products which had been developed and were being sold, but that were not currently in commercial production. Any failure by the Company to successfully develop and scale its manufacturing processes within projected costs and timelines could have a material adverse effect on its business, results of operations or financial condition. As a result, the Company’s realization of its order book could be affected by variables beyond its control and may not be entirely realized. See section 3.0 of this MD&A entitled “Caution Regarding Forward-Looking Statements”. See section 3.0 of the Company’s MD&A for the three months ended June 30, 2022 entitled “Caution Regarding Forward-Looking Statements”.

About Lion Electric:
Lion Electric is an innovative manufacturer of zero-emission vehicles. The company creates, designs and manufactures all-electric class 5 to class 8 commercial urban trucks and all-electric buses and minibuses for the school, paratransit and mass transit segments. Lion is a North American leader in electric transportation and designs, builds and assembles many of its vehicles’ components, including chassis, battery packs, truck cabins and bus bodies.

Always actively seeking new and reliable technologies, Lion vehicles have unique features that are specifically adapted to its users and their everyday needs. Lion believes that transitioning to all-electric vehicles will lead to major improvements in our society, environment and overall quality of life. Lion shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the symbol LEV.

TC Energy : announces $1.8 billion bought deal offering of Common Shares – Form 6-K

TC Energy announces $1.8 billion bought deal offering of Common Shares

CALGARY, Alberta – Aug. 4, 2022 – News Release – TC Energy Corporation (TSX: TRP) (NYSE: TRP) (TC Energy or the Company) today announced that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets and Scotiabank, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 28,400,000 common shares of the Company (the Common Shares) at a price of $63.50 per Common Share (the Offering Price), for gross proceeds of approximately $1.8 billion (the Offering). The Common Shares will be offered to the public in Canada and the United States through the underwriters and their affiliates.

TC Energy has granted the underwriters an over-allotment option to purchase up to an additional 2,840,000 Common Shares at the Offering Price, exercisable at any time up to 30 days following the closing of the Offering (the Over-Allotment Option). If the Over-Allotment Option is exercised in full, the aggregate gross proceeds from the Offering will be approximately $2.0 billion.

The net proceeds from the Offering will be used, directly or indirectly, together with other financing sources and cash on hand, to fund costs associated with the construction of the Southeast Gateway Pipeline, a US$4.5 billion, 1.3 billion cubic feet per day, 715-kilometre offshore natural gas pipeline in the southeast region of Mexico. Pending such use, the net proceeds from the Offering may temporarily be used to reduce indebtedness or invested in short term liquid investments.

The Offering is expected to close on or about Aug. 10, 2022. Completion of the Offering is subject to, and conditional upon, the receipt of all necessary approvals, including approval of the Toronto Stock Exchange and the New York Stock Exchange.

RBC Capital Markets and Scotiabank acted as joint lead book runners on the Offering. Mayer Brown LLP and Blake, Cassels & Graydon LLP were legal advisors to the Company. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Norton Rose Fulbright Canada LLP were legal advisors to the underwriters.

Advisories

The Common Shares will be issued by way of a prospectus supplement to the Company’s short form base shelf prospectus dated Jan. 22, 2021 (collectively, the Prospectus) filed with the securities regulatory authorities in each of the provinces and territories of Canada and included in its registration statement on Form F-10 filed with the U.S. Securities and Exchange Commission (SEC). This Offering is made only by the Prospectus. The Prospectus will contain important detailed information about the securities being offered. Investors should read the Prospectus before making an investment decision.

The Prospectus will be available free of charge on SEDAR at http://www.sedar.com, on the SEC website at http://www.sec.gov or from the underwriters named in the Prospectus. Potential investors may request the Prospectus in Canada from RBC Dominion Securities Inc., 180 Wellington Street West, 8th Floor, Toronto, ON M5J 0C2, Attention: Distribution Centre, or via telephone: 1-416-842-5349, or via e-mail at Distribution.RBCDS@rbccm.com and in the United States from RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281-8098; Attention: Equity Syndicate; Phone: 877-822-4089; Email: equityprospectus@rbccm.com; and in Canada from Scotia Capital Inc., Attention: Equity Capital Markets, Scotia Plaza, 62nd Floor, 40 King Street West, Toronto, Ontario M5H 3Y2, or by telephone at 1-416-863-7704 and in the United States from Scotia Capital (USA) Inc., Attention: Equity Capital Markets, 250 Vesey Street, 24th Floor, New York, New York, 10281, or by telephone at 1-212-225-6853 or by email at equityprospectus@scotiabank.com.

About TC Energy

We’re a team of 7,000+ energy problem solvers working to move, generate and store the energy North America relies on. Today, we’re taking action to make that energy more sustainable and more secure. We’re innovating and modernizing to reduce emissions from our business. And, we’re delivering new energy solutions – from natural gas and renewables to carbon capture and hydrogen – to help other businesses and industries decarbonize too. Along the way, we invest in the communities where we live and work to strengthen community resilience and build a stronger future, together.

TC Energy’s common shares trade on the Toronto (TSX) and New York (NYSE) stock exchanges under the symbol TRP.

FORWARD-LOOKING INFORMATION

This release includes certain forward-looking information, which is intended to help current and potential investors understand management’s assessment of our future plans and financial outlook, and our future prospects overall. Statements that are forward-looking are based on certain assumptions and on what we know and expect today and generally include words like anticipate, expect, believe, may, will, should, estimate or other similar words.

Forward-looking statements do not guarantee future performance. Actual events and results could be significantly different because of assumptions, risks or uncertainties related to our business, the Southeast Gateway Pipeline, or events that happen after the date of this release. Our forward-looking information in this release includes statements related to: the Offering, including the expected closing date of the Offering and the expected use of the net proceeds from the Offering; and the Southeast Gateway Pipeline, including the cost, scope and capacity thereof and sources of financing therefor, among other things.

Our forward looking information is based on certain key assumptions and is subject to risks and uncertainties, including but not limited to fulfillment by the underwriters of their obligations pursuant to their agreement to purchase the Common Shares; that no event will occur which would allow the underwriters to terminate their obligations under such agreement; and assumptions concerning the Southeast Gateway Pipeline, including assumptions regarding the amount and timing of costs to be incurred by the Company in connection therewith, as well as assumptions concerning the sources of financing therefor. Additional information on these and other factors will be discussed in the prospectus supplement and the documents incorporated by reference therein.

As actual results could vary significantly from the forward-looking information, you should not put undue reliance on forward-looking information, which is given as of the date it is expressed in this release or otherwise, and should not use future-oriented information or financial outlooks for anything other than their intended purpose. We do not update our forward-looking statements due to new information or future events, unless we are required to by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to the most recent Quarterly Report to Shareholders and Annual Report filed under TC Energy’s profile on SEDAR at www.sedar.comand with the SEC at www.sec.gov.

Media Inquiries:

Jaimie Harding / Suzanne Wilton

media@tcenergy.com

403-920-7859 or 800-608-7859

Investor & Analyst Inquiries:

Gavin Wylie / Hunter Mau

investor_relations@tcenergy.com

403-920-7911 or 800-361-6522

Attachments

Disclaimer

TC Energy Corporation published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 13:25:08 UTC.

Toronto stocks fall as hot U.S. jobs data sparks recession fears

Aug 5 (Reuters) – Canada’s main stock index fell on Friday,
with commodity and technology stocks leading losses, after a
robust jobs report in the U.S. bolstered the case for the
Federal Reserve to continue its policy tightening pace amid
soaring inflation.

At 9:30 a.m. ET (13:30 GMT), the Toronto Stock Exchange’s
S&P/TSX composite index was down 84.81 points, or
0.43%, at 19,492.23.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Shailesh Kuber)

Mortgage Rates Remain High as Big Banks Anticipate Recession

Canadian banking oligopoly hurting consumers, while US borrowers see falling mortgage rates

News Analysis

Canada’s big banks dominate the mortgage market and aren’t helping homebuyers and housing affordability with lower mortgage rates for the time being. Analysts point to the banking oligopoly in Canada as a major factor in the lack of competitive options for consumers as compared with the United States. 

Like other industries, the big banks are facing their share of challenges as recession fears grow, but the current high rates in the Canadian mortgage market are unwarranted, says Rob McLister, mortgage expert and editor of MortgageLogic.news.

“In Canada, we’ve seen over a 100-basis-point [1 percentage point] drop from the peak in June, and not one big-six bank has budged on 5-year fixed [mortgage] rates. It’s just shocking,” he told The Epoch Times, referring to the 5-year government bond yield that has plunged from about 3.6 percent in mid-June to just over 2.6 percent at the end of July.

 The decline resulted from the financial markets adjusting for a potential recession and expecting central banks to cut interest rates eventually. 

The 5-year bond yield is a key determinant for the mortgage market in Canada, as the 5-year term is the most popular with fixed-rate mortgages, which are far more common than variable-rate mortgages. 

However, despite the fall in bond yield, the best 5-year mortgage rate has continued its steady climb since early June—from 3.6 percent to 4.35 percent in late July—according to data from mortgage site RateHub.ca.

The disparity is even more egregious with the big banks in Canada, as McLister points out that the spread between their typical discretionary 5-year fixed mortgage rate and the 5-year bond yield has ballooned to about 250 basis points, or 2.5 percentage points.

“That is an absolutely massive, massive gap. And there’s really nothing in the market that would warrant such a wide gap even knowing that we’re going to have a potential recession,” said McLister.

In contrast, the United States has seen similar yield declines in its bond markets but mortgage rates there are coming down instead of continuing to climb.

“And you’re telling me that the risk profile in Canada is so dramatically different than that in the U.S.? I don’t think so,” McLister said.

Oligopoly

Canada’s mortgage market operates at the mercy of the big banks. Smaller lenders typically depend on the big banks for financing in order to lend.

“The banks are big players in Canada. They’re oligopolies. … They have the most money. … But that doesn’t mean you can’t find deals at other lenders,” McLister said, adding that “once one of the majors cuts fixed rates, most of the rest should fall in line.”

In the United States, mortgage rates have dropped significantly since hitting a high in mid-June. The popular 30-year fixed mortgage rate hit a high of 5.81 percent in mid-June but has since fallen to 5.30 percent at the end of July, based on data from Freddie Mac.

“It is just shocking how fast the market adjusts to lower yields,” McLister says, referring to the U.S. mortgage market.

If the 10-year bond yield drops by say 10 basis points, McLister says he’d see a bunch of rate updates from a whole slew of lenders on their 30-year fixed-rate mortgages.

Hunkering Down

Banks aren’t compelled to drop their rates for now but are trying to maintain profit margins on mortgages and not keen on growing their mortgage businesses, McLister says. 

He adds that banks are, in part, also expecting to have to set aside more money to cover losses on mortgages and other loans as the likelihood of a recession mounts.

It’s also getting more expensive for banks to obtain longer-term funding due to the growing extra premium—or credit spread—they need to pay investors as compensation for higher risk, given the concerns about a potential recession, McLister says.

“So there’s a shift now in terms of capturing higher margins rather than higher market share.”

This is a notable pivot for the big banks, which had been growing their mortgage businesses in the three months that ended April 30.

A rising interest rate environment, in theory, should be good for banks, which profit from lending at higher rates for longer terms and borrowing at lower rates for shorter terms. They earn the differential or net interest margin.

But when longer-term rates are lower than short-term rates—as they are now—bank lending tends to slow. The phenomenon—known as an inverted yield curve—has an uncanny ability to signal an upcoming economic recession.

As of the end of July, the banking sector on the Toronto Stock Exchange was down 10.3 percent year-to-date, which is worse than the overall index—down 7.2 percent. It’s a similar situation with the banking sector of the S&P 500, though the declines there are worse.

House price affordability has worsened as rates have increased significantly in 2022. While home prices haven’t yet fallen appreciably, predictions for bigger price drops abound.

And with higher rates, mortgages are harder to obtain given that the mortgage stress test requires borrowers to qualify for a rate 2 percentage points higher than the offered mortgage rate.

As Banks Go, So Goes the Economy

U.S. banks and Canadian banks face a similar obstacle of whether their borrowers can pay their loans amid high inflation

According to the U.S. Federal Reserve’s July opinion survey of senior loan officers, U.S. banks are expected to tighten their lending standards for all types of loans.

“A tightening of lending terms for businesses and consumers will constrain consumer spending and business investment as the economy slows, at least at the margin,” said Nancy Vanden Houten, US lead economist with Oxford Economics in an Aug. 1 note.

The flow of bank credit is vital for a growing economy, but it is thus expected to dampen.

Canadian banks are also essentially discouraging people from putting money in their savings accounts, as the interest rates offered are still extremely low even though inflation is above 8 percent. This behaviour is inconsistent with history, as savings accounts typically paid more than inflation when prices were rising rapidly.

Claire Celerier, a University of Toronto finance professor, told The Canadian Press that part of the problem is the concentration in the banking sector and that with less competition, the banks can be slower in adjusting rates.

Banks are flush with deposits as Canadians’ savings swelled during the pandemic.

Rahul Vaidyanath

Journalist

Follow

Rahul Vaidyanath is a journalist with The Epoch Times in Ottawa. His areas of expertise include the economy, financial markets, China, and national defence and security. He has worked for the Bank of Canada, Canada Mortgage and Housing Corp., and investment banks in Toronto, New York, and Los Angeles.

Chart Scan – Aug 04, 2022

Chart Alert – Aug 04, 2022

SBMI.V – Silver Bullet Mines Corp.

GAINS PER DAY SINCE ALERT PRICE
Alerted on 08/04/22
@ 0.28
Day 1
0.00%
Day 2
1.79%
Day 3
-5.36%
Day 4
-5.36%
Day 5
-8.93%

VENZ.V – Venzee Technologies Inc.

GAINS PER DAY SINCE ALERT PRICE
Alerted on 08/04/22
@ 0.03
Day 1
20.00%
Day 2
20.00%
Day 3
20.00%
Day 4
0.00%
Day 5
-100.00%

Maple Leaf stock drops on disappointing results as economic challenges weigh

MISSISSAUGA, Ont. – Maple Leaf Foods Inc. saw its share price drop as much as 18 per cent on the Toronto Stock Exchange after it said challenges in labour markets, supply chains and inflation pushed it to a net loss for the second quarter.

The company said it had a net loss of $54.6 million, or 44 cents per share for the quarter ending June 30, compared with earnings of $8.8 million or seven cents per share for the same quarter last year.

Analysts had been expecting earnings of 12 cents a share, according to financial data firm Refinitiv.

The company says the margin of its meat protein group fell short of guidance because of the wider economic challenges, while it took a $18.6 million restructuring charge on its plant protein group as it looks to “rightsize” the business.

Total company sales were up 3.1 per cent to $1.2 billion, while sales in the plant protein group were down 15.2 per cent to $40.8 million.

Maple Leaf’s shares closed down $4.63, or 17.2 per cent, to $22.33 on the Toronto Stock Exchange after trading as low as $22.02 earlier in the day.

This report by The Canadian Press was first published August 4, 2022.

Companies in this story: (TSX:MFI)

JOIN THE CONVERSATION

Conversations are opinions of our readers and are subject to the Code of Conduct. The Star does not endorse these opinions.

ASX rises, ANZ follows CBA in passing on rate hike

The Australian Competition and Consumer Commission is seeking opinions from market players as it assesses whether an offer by Canada’s Dye & Durham to sell its existing Australian business will be enough to appease competition concerns for the broader $2.5 billion takeover of Link Group.

Dye & Durham, whose share price has plunged 60 per cent on the Toronto Stock Exchange since it made an initial $2.9 billion bid for Link in December, has offered to divest its entire Australian operations to gain the green light from the ACCC for the Link buyout.

Dye & Durham last year purchased property settlements and workflow software solutions group GlobalX, which has an Australian arm, for about $184 million. The Canadian group initially made a foray into the Australian market with the $91 million acquisition of part of SAI Global.

The sale undertaking would quarantine the GlobalX United Kingdom operations, which Dye & Durham would keep, but the existing business would be offered for sale with any new buyer needing the blessing of the ACCC.

Link’s most prized asset is a 42.8 per cent stake in electronic property settlements company PEXA, a near-monopoly operator in e-conveyancing.

Read more here.

IAMGOLD : ANNOUNCES RESULTS OF CÔTÉ GOLD PROJECT UPDATE – Form 6-K

IAMGOLD ANNOUNCES RESULTS OF CÔTÉ GOLD PROJECT UPDATE

Toronto, Ontario, August 3, 2022 – IAMGOLD Corporation (NYSE:IAG, TSX:IMG) (“IAMGOLD” or the “Company”) today announced its updated estimate of costs to complete, project economics and life-of-mine (“LOM”) plan for the Côté Gold project (“Côté Gold” or the “Project”) in Ontario, Canada. A NI 43-101 technical report will be filed on SEDAR on or before September 17, 2022. The project update concludes the Côté Gold costs, schedule, execution strategy and risk review (“project review and risk analysis”) initiated by the Company earlier this year. All dollar amounts are expressed in United States dollars, unless otherwise indicated.

Highlights of the Côté Gold 2022 Technical Report:

•After-tax net present value at a 5% discount rate (“NPV5%”) of $1,109 million on a 100% basis, and an internal rate of return (“IRR”) of 13.5% – at a gold price assumption of $1,700 in 2024 and 2025 and $1,600 thereafter and CAD:USD exchange rate of 1.25 (from May 1, 2022);

•Estimated remaining project costs to complete construction and bring Côté Gold into production of $1,908 million ($1,335 million attributable to IAMGOLD) including escalation and contingency as of May 1, 2022;

•Mine life of 18 years with initial production expected in early 2024;

•Average annual production of 495,000 ounces (320,500 ounces attributable) during the first six years following commercial production, and 365,000 ounces (236,000 ounces attributable) over the LOM;

•LOM average cash costs of $693 per ounce gold (“/oz Au”) sold and all-in sustaining costs (“AISC”) of $854/oz Au sold;

•Cumulative net operating cash flow of $6,086 million and after-tax free cash flow of $2,597 million;

•Côté Gold LOM plan based on Mineral Reserves of 7.2 million ounces in the Côté deposit;

•Côté deposit Measured & Indicated Mineral Resource estimate (inclusive of Mineral Reserves) of 10.2 million ounces; Gosselin deposit Measured & Indicated Resource estimate of 3.4 million ounces; and

•District scale potential with demonstrated exploration upside in one of the world’s leading mining jurisdictions.

Maryse Bélanger, Chair of the Board and Interim President and CEO, said: “The completion of the Côté Gold project review, risk analysis and updated mine plan is the culmination of months of in-depth analysis of the project, based on first principles, by the Company’s management and project teams, EPCM contractor and technical experts. The project today is over 57% complete and the updated project costs and schedule give us greatly improved visibility towards completion. Côté Gold is a project that is being advanced in an environment with significant headwinds, including COVID-19, inflation and other global events – and their impacts on global supply chains, labour availability, and the associated costs of doing business. We are very proud of our teams as they navigate these challenges to continue to advance the project for the benefit of our partners, stakeholders and our business.

“Côté Gold is transformational for IAMGOLD. Once in production, the Project is projected to offer robust free cash flow generation, averaging 365,000 ounces per year at AISC of $854 per ounce for 18 years, based on the 7.2 million ounces currently estimated in Mineral Reserves. There is also tremendous potential for future expansion, starting with the Gosselin deposit, located immediately adjacent to the Côté pit containing 3.4 million ounces in Indicated Mineral Resource and an additional 1.7 million ounces in Inferred Resources. Gosselin has only been drilled to half the depth of Côté and remains open along strike. We believe that Côté Gold is not just a project, but the start of a district, with minimal historical exploration targeting Côté/Gosselin style intrusion-hosted deposits within our 596 km2 land package.

“Given the importance of Côté Gold to achieve our goal of becoming a leading high-margin gold producer, we are actively pursuing various alternatives to increase liquidity to complete construction and deliver Côté on the updated schedule. We expect to address these near-term challenges to advance Côté and better position IAMGOLD as a more resilient, agile company for the current environment.”

SUMMARY OF THE 2022 TECHNICAL REPORT FOR CÔTÉ GOLD

Metrics

Unit

Côté Gold

@ 100%3,4

Gold Price

2024/2025

$/oz

$1,700

LT

$/oz

$1,600

Exchange Rate

USD:CAD

1.25

Production

Mine Life (from commercial production)

Years

18

Total Ore Tonnes Mined

kt

236,000

Total Waste Tonnes Mined

kt

568,000

Strip ratio

waste:ore

2.4

Total Ore Processed

kt

233,000

Processing throughput rate

tpd

37,200

Average Gold Grade, Processed

g/t Au

0.96

Average Recovery Rate

%

91.8

Recovered Gold

oz

6,578,000

Average Annual Gold Production

oz

365,000

Avg. Annual Gold Production (years 1 – 6)

oz

495,000

Unit Operating Costs

Mining (gross cost incl. CWS)

$/t mined

$2.62

Mining (net cost excl. CWS)

$/t processed

$6.20

Processing

$/t processed

$7.97

G&A

$/t processed

$3.31

On-site operating cost

$/t processed

$17.48

Total operating cost

$/t processed

$19.56

Operating Costs

Cash costs2

$/oz Au sold

$693

AISC2

$/oz Au sold

$854

Project Costs

Costs to complete1

$M

$1,908

Sustaining capital2(excl. capitalized waste stripping)

$M

$518

Capitalized waste stripping

$M

$462

Closure

$M

$83

Economic Results

Net Operating Cash Flow

$M

$6,086

Cumulative After-Tax Free Cash Flow1,2

$M

$2,597

After-Tax NPV5%1

$M

$1,109

After-Tax IRR1

%

13.5

Payback Period1

Years

5

Notes:

  1. Costs to complete, cumulative after-tax free cash flow, NPV5%, IRR and payback period are on a go forward basis and exclude sunk costs up to May 1, 2022.
  2. This is a non-GAAP measure. Refer to “Non-GAAP Financial Measures” at the end of his news release.
  3. Project costs incurred until May 1, 2022 at 1.27 CADUSD and project costs from May 1, 2022 and operating costs at 1.25 CADUSD.
  4. The updated metrics are based on what was previously known as the Base Case (203 Mt) plus the Extended Case (30 Mt). The Extended Case mine plan, supported by exploitation of the total Mineral Reserves estimate, includes 233 million tonnes compared to the Base Case of 203 million tonnes over the LOM and adds two additional years to the Base Case mine life without expanding the footprint of the Project. Please see “Cautionary Statement Regarding Forward-Looking Information” below.

Page | 2 of 15

The Côté Gold project is a 70:30 joint venture between IAMGOLD, as the operator, and Sumitomo Metal Mining Co., Ltd. (“SMM”), which collectively has a 92.5% ownership in the project. The Company effectively owns 64.75% of the Côté Gold project, including the Côté and Gosselin deposits, and associated land packages. In accordance with the terms of the joint venture, the updated project costs, schedule and LOM plan is being independently reviewed by SMM.

The updated information will be incorporated in a new technical report titled “Technical Report on the Côté Gold Project, Ontario, Canada” (the “2022 Technical Report”) prepared by representatives of SLR Consulting (Canada) Ltd., Wood Canada Limited and IAMGOLD, each of whom is a “qualified person” (a “QP”), in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The 2022 Technical Report supersedes the technical report on the Côté Gold project dated November 26, 2021 (the “2021 Technical Report”). The 2022 Technical Report will be filed on SEDAR on or before September 17, 2022 and readers are encouraged to review the 2022 Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the details summarized in this news release.

Information relating to the property description and location, land tenure, existing infrastructure, history, geology and mineralization, mineral resources, mineral reserves, mining method, mineral processing, infrastructure, environmental, permitting and social considerations remains materially similar to information provided in respect of these elements in the 2021 Technical Report adjusted, as applicable, to reflect the status of the project as of May 1, 2022. In addition, current information in respect of the mine plan, capital and operating costs estimates and economic analysis is presented in the 2022 Technical Report.

Figure 1 – Côté Gold Production Profile (100%)

Page | 3 of 15

Project Description

The Côté Gold project is located in the Chester and Yeo Townships, District of Sudbury, in northeastern Ontario. It is approximately 25 km southwest of Gogama, 125 km southwest of Timmins, and 175 km northwest of Sudbury. The project is accessible year-round via a 5 km road connecting to Highway 144. The Côté Gold properties were assembled through staking and option agreements covering a total area of approximately 596 km2. Côté Gold is located on Treaty 9 Territory, on the traditional lands of Mattagami First Nation and Flying Post First Nation, and within the traditional harvesting area of the Métis Nation of Ontario, Region 3.

Mineral Resources and Reserves Summary

Mineral Resources

Mineral Resources for the Côté Gold deposit are unchanged from the 2021 Technical Report.

Summary of Côté Mineral Resources – December 19, 2019

Côté Gold Project

Classification

Tonnage
(Mt)

Grade
(g/t Au)

Contained Metal
(Moz Au)

Measured

152.1

0.97

4.72

Indicated

213.4

0.80

5.48

Measured and Indicated

365.5

0.87

10.20

Inferred

189.6

0.63

3.82

Notes:

  1. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves (CIM (2014) definitions) were followed for Mineral Resources.
  2. Mineral Resources are inclusive of Mineral Reserves.
  3. Mineral Resources are estimated at a cut-off grade of 0.3 g/t Au.
  4. Mineral Resources are estimated using a long term price of US$1,500/oz Au, and a CADUSD exchange rate of 1.30.
  5. Bulk density varies from 2.69 t/m3 to 2.85 t/m3.
  6. Mineral Resources are constrained by an optimized resource pit shell.
  7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  8. Numbers may not add due to rounding.

Mineral Reserves

Mineral Reserves were classified in accordance with the CIM (2014) definitions. Only Mineral Resources that were classified as Measured and Indicated were given economic attributes in the mine design and when demonstrating economic viability were classified as Mineral Reserves. Mineral Reserves for the Côté deposit incorporate mining dilution and mining recovery estimations for the open pit mining method.

Mineral Reserves Statement – May 1, 2022

Côté Gold Project

Classification

Tonnes
(Mt)

Grade
(g/t Au)

Contained Metal
(Moz Au)

Total Mineral Reserves

Proven

130.9

1.01

4.26

Probable

102.1

0.88

2.91

Proven and Probable

233.0

0.96

7.17

Notes:

  1. Measured Mineral Resources and Indicated Mineral Resources that are not Mineral Reserves are considered uneconomic at the price used for Mineral Reserve estimations but are deemed to have a reasonable prospect of economic extraction.
  2. The effective date of the Mineral Reserves estimate is May 1, 2022.
  3. The Mineral Reserves were estimated assuming open pit mining methods and are reported on a 100% Project basis.
  4. Mineral Reserves used the following assumptions: price of $1,200/oz Au; fixed process recovery of 91.8%; treatment and refining costs, including transport and selling costs of $1.75/oz Au; variable royalty percentages by zone: 0.75% for Zone 1, 1.00% for zone 2, 0.00% for zone 3, 1.50% for zone 4, 0.75% for zone 5, 1.50% for zone 6, and 0.75% for zones 7 and 8; overall pit slope angles varying by sector with a range of 45.8° to 56.4°; processing costs of $10.17/t, which includes process operating costs of $7.01/t, general and administrative costs of $1.84/t, sustaining costs of $0.82/t, and closure costs of $0.50/t; mining costs of $1.61/t incremented at $0.029/t/12m below 388 elevation (life-of-mine average mining costs of $2.01/t); and rehandling costs of $0.87/t. The cut-off applied to the reserves is 0.35 g/t Au.
  5. Numbers have been rounded. Totals may not sum due to rounding.

Page | 4 of 15

Pit optimization parameters, financial assumptions, pit-shell selection, and mining dilution and recovery factors remain unchanged from the 2018 feasibility study technical report. The mine design was updated to optimize pit phasing, ramp location, and waste stripping, resulting in negligible changes to Mineral Reserves compared to the previous estimate, and small reductions in waste.

Mine Design and Mining Methods

The mine will operate a fleet of autonomous trucks and blasthole drills, supported by a conventional fleet for loading and ancillary equipment. The truck fleet is diesel-powered and provides enough capacity to mine an average of approximately 54 Mtpa, with a peak of 70 Mtpa by the addition of five haul trucks by year 8. The loading fleet will include two electric-powered hydraulic shovels, supplemented by three large diesel-powered front-end loaders (FELs). Primary mobile equipment will consist of:

•Loading – CAT 6060 electric/hydraulic (6060E) shovel and CAT 994K high lift FELs

•Hauling – CAT 793F mechanical drive truck operated in autonomous mode

Pre-production commenced with contract mining in the first quarter 2021 and consists of overburden removal, construction material supply, and initial bench development. Contractor mining will phase out in the first quarter 2023 towards a handoff to owner mining in the second quarter 2023. In parallel, delivery of autonomous equipment has begun in the second quarter of 2022 and owner mining is expected to commence in the first quarter of 2023. The mine is scheduled to operate 24 hours per day, seven days per week (24/7 schedule), using four rotating crews working 12 hour shifts.

The Côté pit design has been updated to be mined in five phases. The scheduling constraints establish the maximum mining capacity at 70 Mtpa and the maximum number of benches mined per year at eight in each phase. The design parameters include a ramp width of 36 m, maximum road grades of 10%, bench height of 12 m, berm height interval of 24 m, geotechnical catch bench of 20 m if stacking height is greater than 150 m, a minimum mining width of 40 m, and variable slope angles and berm widths by sector.

The final pit design contains 235 Mt of ore at 0.95 g/t Au and 575 Mt of waste for a resulting stripping ratio of 2.4:1 (waste:ore). The total LOM mill feed is 233 Mt at 0.96 g/t Au, constrained by the TMF capacity, and 2.3 Mt of low grade ore material remaining in stockpiles at the end of mine life.

Figure 2 -Material Movement Schedule

Page | 5 of 15

The updated mine plan in the 2022 Technical Report has made the following changes in assumptions in mine design and mining from the 2021 Technical Report:

•Revised pit phasing incorporating a Phase 1 Pit design centered on a higher-grade zone and re-phasing of Phases 2-4;

•Steeper ramp gradient in Phase 1 (10% versus 8% previously) allowing to reach an additional bench at the bottom of the Phase 1 pit;

•Modification to starter pit boundaries to optimize waste mined during the project period;

•Modified stockpile strategy for LOM plan to minimize stockpile re-handling of mill feed material;

•Reviewed owner mining ramp-up assumptions and expanded shift schedules; and

•During the pre-production period, the truck and shovel equipment utilization has been reduced to account for autonomous commissioning, initial site conditions, and operator skill level. The schedule allows for a one year truck commissioning period.

Figure 3 – Pit Phasing Comparison for 2022 Technical Report

Processing Plant

The process flowsheet includes a primary/secondary crushing circuit, HPGR tertiary stage, followed by two stages of grinding (ball and vertical milling), gravity concentration and cyanide leaching, gold recovery by CIP, stripping and electrowinning (EW). The HPGR and grinding circuits will target a final product size of P80 100μm. Cyanide destruction and tailings thickening are also integrated in the processing facility. Average recovery is estimated at 91.8% throughout LOM, with gold recovery by gravity estimated at 23%.

The new mine plan contains updated assumptions and inputs for initial ramp-up of the plant. The updated model forecasts early ramp-up to be per design up to about 70% mill utilization. Steady-state is expected to be achieved over 20 months (previously 10 months) achieving a maximum of 92.6% utilization (previously 94%).

Design throughput is for 1,596 tph ore (35,500 tpd) processing capacity but several components including electrical circuit, chutes, pumps and pump boxes are designed for 1,862 tph (42,000 tpd). The maximum throughput potential of the plant was reviewed against McNulty start-up curves, with the Côté Gold plant and technology fitting the type 1 curve. The project economic model assumes a McNulty 1 start-up curve resulting in the processing plant achieving 105% of nameplate capacity, or 37,200 tpd, by year 3.

Page | 6 of 15

Figure 4 – Processing Plant Throughput and Head Grade

Project Costs

From May 1, 2022, the remaining costs to complete Côté Gold are estimated at $1,908 million on a 100% basis and net of leases ($1,335 million attributable to IAMGOLD) including contingency of $185 million and escalation allowance of $80 million.

Project Scope Project Costs
@ 100%
(US$ million)1
Procurement 343
Earthworks 575
Process 519
Infrastructure 162
Indirects and EPCM 533
Mining 274
Owner’s Costs 294
Contingency 185
Escalation 80
Revised Project Budget (100% Basis) 2,965
Less Early Works Sunk Cost -75
Subtotal excluding Sunk 2,890
Less incurred to April 30, 2022 -982
Costs Going Forward 1,908
Costs attr. to IAMGOLD (70%) 1,335

Notes:

  1. Project costs incurred prior to May 1, 2022 at an actual exchange rate of 1.27 CADUSD. Estimated project costs from May 1, 2022 onwards at 1.25 CADUSD.

Page | 7 of 15

Operating Costs

Over the LOM, total cash costs are expected to average $693/oz Au sold or $19.56 per tonne (“/t”), and AISC are expected to average $854/oz Au sold.

LOM

$/tonne

$/tonne

$/oz

$M

material

processed

sold

Mining (gross costs incl. CWS)1

$2.62

Mining (net cost excl. CWS)2

$1,445

$6.20

$220

Processing

$1,856

$7.97

$282

G&A

$772

$3.31

$117

Subtotal

$4,073

$17.48

$619

Royalties + Offsite costs

$485

$2.08

$74

Total cash costs

$4,558

$19.56

$693

Sustaining Capital

$518

$2.22

$79

Capitalized waste stripping (CWS)

$462

$1.98

$70

Asset retirement obligation

$83

$0.35

$13

AISC

$5,620

$24.12

$854

∗Totals may not add up due to rounding

  1. Mining (gross cost incl. CWS) is the mining cost including capitalized waste stripping costs
  2. Mining (net cost excl. CWS) is the mining cost excluding capitalized waste stripping, with this amount being transferred to sustaining capital

Mining Costs

Mining costs are estimated to average $2.62/t of material mined over the LOM. Net mining costs are estimated at $6.20/t processed, which excludes capitalized waste stripping (“CWS”) expenditures transferred to sustaining capital based on World Gold Council (WGC) guidelines. A total of 220 Mt of mined material is classified as CWS during the LOM with a small amount in Phase 4 and Phase 5 classified as non-sustaining capital (27 Mt) and the remainder as sustaining capital (193 Mt).

On a cost by cost centre basis, mine haulage accounts for 39% of the mine operating costs. Open pit services accounts for 7% of the mine costs, followed by loading, blasting, and drilling. Contract mining accounts for 6% of the costs and stockpile rehandle accounts for 5%. Other costs include costs for pit dewatering, engineering and geology, and operations and management overhead.

Mining costs increased 15% from the 2021 Technical Report due to a number of factors, including increased headcount and extended ramp up assumptions. Diesel fuel, maintenance parts and supplies, and personnel costs are the largest cost items, followed by contract services, autonomous licence fees, explosives, and tire costs.

Process Costs

Process operating costs over the LOM are estimated to average $7.97/t of processed ore, increasing 7.7% from the 2021 Technical Report. The cost increases are related to higher contractor maintenance costs for monthly and annual shutdowns, increased maintenance costs in the first three years, and an increase in TMF operations and monitoring costs.

The cost breakdown of operating costs for the processing plant include the following:

•Reagents represent approximately 25% of the total process operating cost at $1.99/t milled;

•Wear parts and maintenance supplies represent approximately 22% of the total process operating cost at $1.75/t milled;

•Grinding media represent approximately 15% of the total process operating cost at $1.19/t milled;

•Personnel costs represent approximately 15% of the total process operating cost at $1.21/t milled;

•The cost of the assay laboratory contract represents approximately 4% of the total process operating costs at $0.34/t milled; and

•Power costs represent approximately 14% of the total process operating cost at $1.09/t milled.

Page | 8 of 15

G&A and other

G&A costs over the LOM are estimated to average $3.31/t, an increase of 13.8% from the 2021 Technical Report due to a number of factors, including increased headcount over the LOM, increases in daily camp rates, continuation of site services post construction-phase with associated increases in owner’s costs.

Sustaining Capital

Total post-production sustaining capital expenditures are estimated at $1,136 million, which includes CWS ($462 million), capital investments to sustain production including additions to the mining fleet and annual TMF build-out costs ($518 million), and lease payments on the initial mining fleet ($156 million). This excludes $16 million for the permanent camp which is fully commissioned. Reclamation and closure costs are estimated to total $83 million.

Economics

On a go forward basis from May 1, 2022, the after-tax NPV5% of the Côté Gold project is estimated at $1,109 million with an implied after-tax IRR of 13.5% assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2024 and 2025). At spot metal prices of $1,775/oz Au over the LOM, the Côté Gold project has an estimated after-tax NPV5% of $1,558 million and implied after-tax IRR of 16.5%.

Gold Price

2024/2025

$1,400

$1,500

$1,600

$1,700

$1,700

$1,800

$1,900

LT

$1,600

NPV5%

$410

$746

$1,047

$1,109

$1,345

$1,629

$1,912

IRR A/T

8.1%

10.6%

12.8%

13.5%

15.0%

17.0%

19.0%

Note: Economic results, including NPV5% and IRR are on a go forward basis and exclude sunk costs up to May 1, 2022.

Upcoming Milestones and Schedule Summary

Figure 5 – Côté Gold Project Schedule of Key Milestones

Page | 9 of 15

The Company cautions that potential further disruptions, including, without limitation caused by COVID-19, the Ukraine war, inflation, other global supply chain disturbances, weather, labour disputes and the tight labour market could continue to impact the timing of activities, availability of workforce, productivity and supply chain and logistics and, consequently, could further impact the timing of production and, consequently, project costs.

Other Opportunities

Gosselin

On October 18, 2021, IAMGOLD reported an initial Mineral Resource estimate for the Gosselin deposit, located immediately adjacent to the Côté deposit. As outlined in the 2021 Technical Report, Gosselin Indicated Resources total 124.5 Mt at an average grade of 0.84 g/t Au, containing 3.4 Moz Au. An additional 72.9 Mt at an average grade of 0.73 g/t Au, containing 1.7 Moz Au are estimated in the Inferred Mineral Resource category. The Mineral Resources are estimated at a 0.3 g/t Au cut-off grade, based on a price of $1,500/oz Au, and have an effective date of October 4, 2021.

Diamond drilling to date has delineated wide intervals of low-grade gold mineralization hosted in altered and brecciated intrusive lithologies similar to that observed at the adjacent Côté Gold deposit, extending from the Young-Shannon historical shaft in the west to the Gosselin zone in the east. Drilling to date has outlined mineralization over a strike length of 1,400 metres, width of 400 metres and a depth extent of 425 metres. The deposit outcrops below the shallow Three Ducks Lake, and remains open at depth, to the northwest, and along strike to the northeast and southwest.

During the first quarter 2022, the Company announced remaining assay results from its 2021 delineation diamond drilling program at the Gosselin zone confirming expected grades within the modelled resource, and in some cases, the extension of the mineralization zone outside the resources boundaries of the mineralization model (see news release dated January 27, 2022).

Gosselin Mineral Resources are not included in the current Côté Gold LOM plan and represent potential for future mine life extensions.

Figure 6 – Long Section View of Côté & Gosselin Deposits

Page | 10 of 15

Processing Expansion

The Côté Gold processing plant has a target throughput of 37,200 tpd, while a significant proportion of the components, including electrical circuit, chutes, pumps and pump boxes have a capacity design of 42,000 tpd. A potential plant expansion requires further study and would be subject to a capital allocation decision at a future date when appropriate. There is no guarantee that a plant expansion will be undertaken.

Exploration upside

The Côté Gold project is located along the South-Western extension of the prolific Abitibi Belt. The land package totalling 596 km2 is a continuous property spanning 65 km in the South Swayze Green Stone Belt. Historic exploration on the property was focused on orogenic, narrow-vein gold zones, with little exploration for Côté/Gosselin style intrusion-hosted deposits.

Figure 7 – Côté Gold Project Land Package

Conference Call

Senior management will host a conference call on Thursday, August 4, 2022, at 8:30 a.m. ET to discuss the second quarter 2022 operating performance, financial results and Côté Gold update.

Listeners may access the conference call via webcast or through the following dial-in numbers:

Toll free (North America): 1 (800) 319-4610

International: +1 (604) 638-5340

Webcast: www.iamgold.com

An online archive of the webcast will be available by accessing the Company’s website at www.iamgold.com. A telephone replay will be available for one month following the call by dialing toll free 1 (800) 319-6413 within North America or +1 (604) 638-9010 from international locations and entering the passcode: 9179.

Page | 11 of 15

QUALIFIED PERSONS

The 2022 Technical Report is being prepared by representatives of SLR, Wood and IAMGOLD, each of whom is a “qualified person”, as defined in NI 43-101 (a “QP”). SLR and Wood QPs are independent of IAMGOLD and have reviewed and approved the information contained in this news release that is derived from their respective sections of disclosure to be contained in the 2022 Technical Report. The affiliation and areas of responsibility for each QP involved in preparing the 2022 Technical Report are provided below.

SLR QPs

  • J. Cox, P.Eng. – Mineral Reserves, mining, operating costs, economic analysis
  • T. Ciuculescu, P.Geo. – Mineral Resources

Wood QPs

  • D. Nada, P.Eng. – Project capital costs

IAMGOLD QPs

  • A. Smith, M.Sc., P.Geo. – Exploration, geological setting, deposit types and drilling
  • M-F. Bugnon, M.Sc., P.Geo. – Property description, location, accessibility, climate, infrastructure, physiography and history

ABOUT IAMGOLD

IAMGOLD is a mid-tier gold mining company operating in North America, South America and West Africa. The Company has three operating mines: Essakane (Burkina Faso), Rosebel (Suriname) and Westwood (Canada), and is building the large-scale, long life Côté Gold project (Canada) which is expected to commence production in early 2024. In addition, the Company has a robust development and exploration portfolio within high potential mining districts in the Americas and West Africa.

IAMGOLD employs approximately 5,000 people and is committed to maintaining its culture of accountable mining through high standards of Environmental, Social and Governance (“ESG”) practices, including its commitment to Zero Harm®, in every aspect of its business. IAMGOLD is listed on the New York Stock Exchange (NYSE:IAG) and the Toronto Stock Exchange (TSX:IMG) and is one of the companies on the Jantzi Social Index (“JSI”), a socially screened market capitalization-weighted consisting of companies which pass a set of broadly based environmental, social and governance rating criteria.

IAMGOLD Contact Information

Graeme Jennings, Vice President, Investor Relations

Tel: 416 360 4743 | Mobile: 416 388 6883

Philip Rabenok, Manager, Investor Relations

Tel: 416 933 5783 | Mobile: 647 967 9942

Toll-free: 1 888 464 9999

info@iamgold.com

All material information on IAMGOLD can be found at www.sedar.com or at www.sec.gov.

Si vous désirez obtenir la version française de ce communiqué, veuillez consulter le www.iamgold.com/French/accueil/default.aspx.

Page | 12 of 15

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Statements included in this news release, including any with respect to the Company’s future financial or operating performance, and other statements that express management’s expectations or estimates of future performance, including statements in respect of the prospects and/or development of the Company’s projects, other than statements of historical fact, constitute forward-looking information or forward-looking statements, within the meaning of applicable securities laws (collectively referred to herein as “forward-looking statements”) and such forward-looking statements are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans relating to the future. Forward-looking statements are generally identifiable by, but are not limited to, the use of the words “may”, “on track”, “will”, “should”, “continue”, “expect”, “budget”, “forecast”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, “schedule”, “guidance”, “outlook”, “potential”, “seek”, “target”, “strategy”, or “project” or the negative or other variations of these words or comparable terminology. Forward-looking statements contained in this news release include, without limitation, statements with respect to: the Company’s guidance for production at Cote Gold, including estimated timing and amounts thereof; total cash costs; all-in sustaining costs; the estimation of mineral reserves and mineral resources; the realization of mineral reserve and mineral resource estimates; the intention of the Company to file the 2022 Technical Report; estimated impairment charges; expected capital expenditures; operations outlook; the progress of development at Côté Gold, including progress of project expenditures and contracting processes; the timing for commencement of commercial production at Côté Gold; the Company’s plans and expectations with respect to liquidity management; the future price of gold and other commodities; permitting timelines; exchange rates and currency fluctuations; requirements for additional capital; and the Company’s decisions with respect to capital allocation; and the impact of COVID-19, inflation, global supply chain disruptions and the war in Ukraine on the Company, including its operations, the project schedule for Côté Gold, key inputs, staffing and contractors.

The Company cautions the reader that forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, financial, operational and other risks, uncertainties, contingencies and other factors, including those described below, which could cause actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed or implied by such forward-looking statements and, as such, undue reliance must not be placed on them. Such risks, uncertainties, contingencies and other factors include, but are not limited to: the Company’s business strategies and its ability to execute thereon; risks associated with the process of estimating mineral reserves and mineral resources; the condition and results of the mining industry as a whole, and the gold mining industry in particular; changes in the global prices for gold or other commodities (such as diesel and electricity); the ongoing impact of COVID-19 (and its variants), inflation, global supply chain disruptions and the war in Ukraine on the Company and its workforce, the availability of labour and contractors, key inputs for the Company and global supply chains; government actions taken in response to COVID-19 and other public health emergencies and pandemics, including new variants of COVID-19, and any worsening thereof; legal, litigation, legislative, political, economic or security developments in the jurisdictions in which the Company carries on business; the volatility of the Company’s securities; assessment of carrying values for the Company’s assets, including the ongoing potential for material impairment and/or write-downs of such assets; title disputes; input in the management of certain of the Company’s assets by other companies or joint venture partners; the lack of availability of insurance covering all of the risks associated with the Company’s operations and projects; unexpected geological conditions; potential shareholder dilution; potential activist engagements; increasing competition and consolidation in the mining sector; changes in tax laws, including mining tax regimes; the failure to obtain in a timely manner from authorities key permits, authorizations or approvals necessary for exploration, development or operations at the Company’s operations; the inability to participate in any gold price increase above the cap in any collar transaction entered into in conjunction with a gold sale prepayment arrangement; the availability of necessary capital and impacts on the Company’s liquidity levels; access to capital markets and financing; the Company’s level of indebtedness; the Company’s ability to satisfy covenants under its credit facilities and other debt instruments; changes in interest rates; adverse changes in the Company’s credit rating; the Company’s choices in capital allocation; effectiveness of the Company’s ongoing cost containment efforts; the ability to execute on the Company’s de-risking activities and measures to improve operations; risks related to third-party contractors, including reduced control over aspects of the Company’s operations and/or the failure of contractors to perform as expected; risks arising from holding derivative instruments; changes in U.S. dollar and other currency exchange rates, interest rates or gold lease rates; the speculative nature of exploration and development, including the risks of diminishing quantities or grades of reserves; the fact that reserves and resources, expected metallurgical recoveries, capital and operating costs are estimates which may require revision; the presence of unfavourable content in ore deposits, including clay and coarse gold; inaccuracies in life of mine plans; failure to meet operational targets; geotechnical difficulties and major equipment failure; information systems security threats and cybersecurity; laws and regulations governing the protection of the environment; employee relations and labour disputes; the maintenance of tailings storage facilities and the potential for a major spill or failure of the tailings facilities due to uncontrollable events, such as extreme and unpredictable weather or seismic events; physical and regulatory risks related to climate change; attraction and retention of key employees and other qualified personnel; availability and increasing costs associated with mining inputs and labour; the availability of qualified contractors and the ability of contractors to timely complete projects on acceptable terms; the relationship with the communities surrounding the Company’s operations and projects; indigenous rights or claims; illegal mining; and the inherent risks involved in the mining industry generally. Please see the Company’s AIF or Form 40-F and the “Risk and Uncertainties” section of the Company’s management discussion and analysis as at and for the six months ended June 30, 2022, available on www.sedar.com or www.sec.gov/edgar.shtml for a comprehensive discussion of the risks faced by the Company and which may cause actual results, performance or achievements of the Company to be materially different from results, performance or achievements expressed or implied by forward-looking statements.

Page | 13 of 15

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as required by applicable law.

NON-GAAP FINANCIAL MEASURES

This news release contains non-GAAP financial measures, including cash costs per ounce sold (“COC”), AISC per ounce sold, sustaining and expansion capital expenditures, average realized gold price and available liquidity. The Company believes that, in addition to conventional financial measures prepared in accordance with IFRS, certain investors use these non-GAAP financial measures to assess the performance of the Company. These non-GAAP financial measures do not have any standardized meaning prescribed by IFRS, may not be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Cash costs include mine site operating costs such as mining, processing, administration, royalties, production taxes, and realized derivative gains or losses, exclusive of depreciation, reclamation, capital expenditures and exploration and evaluation costs. AISC include cost of sales exclusive of depreciation expense, sustaining capital expenditures, which are required to maintain existing operations, capitalized exploration, sustaining lease principal payments, environmental rehabilitation accretion and depreciation, by-product credits, and corporate general and administrative costs. These costs are then divided by the Company’s attributable gold ounces sold by mine sites in commercial production in the period to arrive at COC and AISC per ounce sold. The Company believes that the use of COC and AISC per ounce sold metrics will assist analysts, investors and other stakeholders of the Company in assessing its operating performance and its ability to generate free cash flow.

The Company presents its sustaining capital expenditures in its all-in sustaining costs to reflect the capital related to producing and selling gold from its mine operations. The distinctions between sustaining and expansion capital used by the Company align with the guidelines set out by the World Gold Council. Expansion capital is capital expenditures incurred at new projects and capital expenditures related to major projects or expansion at existing operations where these projects will materially benefit the operations. This non-GAAP financial measure provides investors with transparency regarding the capital expenditures required to support the ongoing operations at its mines, relative to its total capital expenditures.

CAUTIONARY NOTE TO U.S. INVESTORS REGARDING DISCLOSURE OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES

The mineral resource and reserve estimates contained in this news release have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the “CIM Standards”).. These standards are similar to those used by the United States Securities and Exchange Commission (the “SEC”) Industry Guide No. 7, as interpreted by the SEC staff. However, the definitions in NI 43-101 and the CIM Standards differ in certain respects from those under Industry Guide 7. Accordingly, mineral resource and reserve information contained in this news release may not be comparable to similar information disclosed by United States companies. Under the SEC’s Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made.

As a result of the adoption of amendments to the SEC’s disclosure rules (the “SEC Modernization Rules”), which more closely align its disclosure requirements and policies for mining properties with current industry and global regulatory practices and standards, including NI 43-101 and the CIM Standards, and which became effective on February 25, 2019, the SEC now recognizes estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources.” In addition, the SEC has amended definitions of “proven mineral reserves” and “probable mineral reserves” in its amended rules, with definitions that are substantially similar to those used in NI 43-101. Issuers must begin to comply with the SEC Modernization Rules in their first fiscal year beginning on or after January 1, 2021, though Canadian issuers that report in the United States using the Multijurisdictional Disclosure System (“MJDS”) may still use NI 43-101 rather than the SEC Modernization Rules when using the SEC’s MJDS registration statement and annual report forms.

United States investors are cautioned that while the SEC now recognizes “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources” under the SEC Modernization Rules, investors should not assume that any part or all of the mineral deposits in these categories will ever be converted into a higher category of mineral resources or into mineral reserves. These terms have a great amount of uncertainty as to their economic and legal feasibility. Under Canadian regulations, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in limited circumstances.

Page | 14 of 15

Investors are cautioned not to assume that any “measured mineral resources”, “indicated mineral resources”, or “inferred mineral resources” that the Company reports in this news release are or will be economically or legally mineable. Further, “inferred mineral resources” have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that any part or all of an inferred mineral resource will ever be upgraded to a higher category.

The mineral reserve and mineral resource data set out in this news release are estimates, and no assurance can be given that the anticipated tonnages and grades will be achieved or that the indicated level of recovery will be realized.

Page | 15 of 15

Attachments

Disclaimer

IAMGOLD Corporation published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 21:39:59 UTC.

Giga Metals : Completes 2022 Geotechnical Field Program

August 3 2022

TSX.V – GIGA

Giga Metals Completes 2022 Geotechnical Field Program

(Vancouver) – Mark Jarvis, CEO of Giga Metals Corp. (TSX.V – GIGA) today announced the completion of 2022 geotechnical site investigations on the Company’s Turnagain Nickel/Cobalt Project.

The 2022 work program included:

  • Five helicopter-supported combination 4″ Sonic/HQ geotechnical holes totaling 415 metres within the proposed tailings storage main and saddle dam alignments.
  • Eighteen excavator test pits within the proposed stockpile and waste storage areas.

“The successful acquisition of this geotechnical information will allow us to advance engineering of the Turnagain project to the Pre-Feasibility level of detail,” said Mr. Jarvis. “The combination Sonic/HQ geotechnical drilling allows for the efficient characterization of both overburden and bedrock geotechnical parameters in support of PFS-level tailings storage facility design. The data collected in this program, when interpreted alongside the seismic refraction survey conducted in 2021, will significantly add to our understanding and will allow for refined tailings storage design engineering. Similarly, the 18 excavator test pits in the proposed stockpile and waste storage areas complement our existing understanding derived

from prior work in the area.”

Qualified Person

Greg Ross, P. Geo., a Qualified Person as defined by NI 43-101, has read and approved all technical and scientific information contained in this news release. Mr. Ross is the Company’s Turnagain Project Manager.

About Giga Metals’ Turnagain Nickel-Cobalt Project

The Turnagain Project hosts a significant undeveloped nickel-cobalt sulphide deposit, located in British Columbia, Canada.

Engineering and metallurgical studies are underway with an objective of producing a Pre-Feasibility study focused on delivery of nickel and cobalt to the battery cathode supply chain. Extensive metallurgical work indicates a clean concentrate grading 18% nickel and 1% cobalt is reliably achievable using simple “off- the-shelf” processing technology. Testwork has shown that Turnagain concentrate is amenable to production of high quality Mixed Hydroxide Precipitates, a chemical form of nickel and cobalt that is in high demand from battery manufacturers.

#203-700 West Pender Street, Vancouver, BC, V6C 1G8

Tel: 604 681 2300

The Turnagain project covers a large, relatively underexplored land package prospective for additional ultramafic-hostednickel-cobalt discoveries.

On behalf of the Board of Directors,

“Mark Jarvis”

MARK JARVIS, CEO

GIGA METALS CORPORATION

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved the information contained herein.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this press release include the completion of a Pre-Feasibility Study.

These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include changing operational costs for mining and processing; increased capital costs; the timing and content of upcoming work programs may be interrupted or delayed; geological interpretations based on drilling that may change with more detailed information; the availability of labour, equipment, infrastructure and markets for the products produced; and despite the current expected viability of the project, conditions changing such that the minerals on our property cannot be economically mined, or that the required permits to build and operate the envisaged mine cannot be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.

#203-700 West Pender Street, Vancouver, BC, V6C 1G8

Tel: 604 681 2300

Attachments

Disclaimer

Giga Metals Corporation published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 21:55:32 UTC.

Copyright © 2019. TSX Stocks
All Rights Reserved